Bank Negara to publish proposals for Syariah contract framework
The central bank governor outlined priorities including risk-sharing finance, support for halal enterprises and investment in renewable energy.
Bank Negara Malaysia will publish a strategy paper alongside an exposure draft in 2026 as part of its review of the Syariah Contract Framework, governor Datuk Seri Abdul Rasheed Ghaffour said.
Addressing the 21st Kuala Lumpur Islamic Finance Forum (KLIFF) 2026, Abdul Rasheed said the review aims to widen the use of Syariah contracts and improve their application. He said the next Financial Sector Blueprint would seek closer alignment between finance and Malaysia’s future socioeconomic priorities, with measures of success also needing to change.
The governor called for cooperation among regulators, financial institutions, Syariah scholars and other industry participants. He pointed to the Digital Asset Innovation Hub, introduced in June 2025, as a platform for exploring new technologies and uses that deliver economic value.
Abdul Rasheed said Islamic finance could offer risk-sharing solutions where financing requires a wider range of capital sources, structures and risk profiles. Through i-CITA, launched in 2025, the central bank is helping the industry learn how to offer such solutions in areas including climate resilience and food security.
He identified three priorities: channelling resources towards higher-value sectors and renewable energy while building resilience to shocks; developing solutions for unmet household and business needs, including financial and technical assistance for halal micro, small and medium enterprises; and keeping fairness, integrity and empathy central to commercial decisions and market behaviour.
